Try pitching Mark Cuban a “PhoneDrone,” a flying robot that operates via your smartphone. It worked for xCraft’s Charles Manning and JD Claridge, creators of the X PlusOne drone and the PhoneDrone.

The two pitched their drone startup on season seven of ABC’s
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“Shark Tank,” seeking $500,000 for 20% equity in their company, which would have valued it at $2.5 million. They walked away with $1.5 million for 25% equity in a unanimous investment involving every single “Shark Tank” judge in the episode: Mark Cuban, Daymond John, Kevin O’Leary, Lori Greiner and Robert Herjavec -- a rare feat on the show. The “Shark Tank” investment values the company at $6 million.

XCraft creates both the X PlusOne, a hybrid, professional-grade drone that both hovers and can fly at speeds greater than 60 miles an hour, and the PhoneDrone, a device that gives your smartphone wings, allowing it to stream video through Periscope or download it straight to the phone.

Though XCraft founder JD Claridge says he sees long-term growth in the commercial drone market, it was the consumer-targeted PhoneDrone that really won over the sharks. Claridge talked with MarketWatch about his business and what it’s like to land a deal on “Shark Tank.”

MarketWatch: Why do you think your company won on “Shark Tank”?

Claridge: Drones are hot. A lot of investors are interested in them now.

Our strategy was to show we’re more than just a product. We’re a powerful team in the founding members. I’m the nerd on the aerospace side, the inventor. I brought on Charles Manning as the business development guy -- he’s the business smarts, but his background is in software. We wanted to make sure the sharks understood that.

MarketWatch: Were you gunning for a particular shark?

Claridge: My partner and I had targeted Cuban. He was our first pick if we had a choice, just because of his connections with a lot of other companies in the tech space. Ironically he was one of the last ones to join in.

ABC

MarketWatch: Why was he more hesitant than the rest?

Claridge: It wouldn’t have played as well if we got 4 out of the 5. Mainly I think it was because he’s familiar with this space and the tech scene. He knows a lot of the companies in this space are being approached for investment opportunities all the time. Mark was concerned we were there essentially for the publicity.

MarketWatch: So you had a different experience on the show than most contestants do, walking away with $1.5 million for 25% from five sharks.

Claridge: I had seen how many times the sharks can be very vicious and go for low valuations. They rip you apart. That didn’t happen with us. I wasn’t prepared for that well of a reception. It was surprising.

xCraft

The X PlusOne drone costs $400 to make and retails for $1,800. The company has sold 173,000 in pre-sales.

MarketWatch: Why did they receive it so well -- especially since sites like Kickstarter and the broader market are becoming saturated with drones?

Claridge: We see the X PlusOne as the Tesla of drones. It’s a high-end “prosumer” drone.

There isn’t a lot of innovation in the space. It’s a lot of quadcopters and multi-rotors that look the same, do the same thing. They follow you, follow flight plans or fly from a controller. We offer something different in that space. Our craft, the X PlusOne will hover, like all the other drones, but it will also travel like an airplane up to 60 miles an hour. It’s different.

MarketWatch: And PhoneDrone?

Claridge: It’s a new concept to use your smartphone as the brain and eyes of your drone. We want anybody with a smartphone to now make it fly. Whenever you’re out doing something, out mountain biking, maybe you can run a Periscope from the air. You can also take video directly on your phone for easy sharing anywhere.

xCraft

The PhoneDrone costs $100 to make and will likely retail for $300

MarketWatch: But flying smartphones -- what if it crashes into the water?

Claridge: The drone does protect the smartphone, and we do allow waterproof cases. People don’t think twice about putting a $400 GoPro on a drone. This is not all that much different.

MarketWatch: A lot of the general public fears drones. Was that ever a concern on “Shark Tank”?

Claridge: We didn’t have any of the sharks that were overly concerned with privacy issues, safety or airspace.

MarketWatch: So your company creates both hobby drones -- the PhoneDrone -- and professional level drones -- the X PlusOne. Why did you decide to pursue both?

Claridge: I think there is opportunity in both areas. There’s opportunity in the consumer market right now with drones. A lot of people think they’re cool... though a lot of people also hate them. But my background is aviation, so I’m more inclined to head down the path of an enterprise product.

ABC

MarketWatch: Are you worried drones are just a fad?

Claridge: They are absolutely here to stay. The consumer drone potentially could be a fad. They’re hot. People want them for taking selfies from the air or automatically follow them when they snowboard. But it can be a powerful fad. As far as commercial drones, obviously the ability to place sensors in the air is going to be valuable to businesses forever.

MarketWatch: Now that you have the money, how closely do you work with Mark Cuban and the other investors?

Claridge: We’re in communication with his people. Actually talking with any of the sharks is fairly rare, but it does happen. They’re very busy people with lots of different investments.

Claridge: Believe in your product. Believe in your company and who you are. Make sure that throughout the whole process, that comes through. You have to be fully convinced in your mind that you’re going to be successful, regardless of whether you get an investment from the sharks. If they don’t invest, it’s their loss.

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